Clear Channel (CCU) continues to see active trading, with heavy volume in the May, June, July puts and calls. Although the action is difficult to decipher at this point, some of the trading appears to be part of a spread, where the strategist bought 24,000 of the July 30 straddles and sold a same number of June 30 straddles. The spread might be a play on CCU staying quiet through the June expiration before making an explosive move in late June/early July. Recall that Bain Capital and Thomas H. Lee are in the process of attempting a $22 billion buyout of the company. The deal values CCU at $39.10 a share and more than 10 percent higher than the current market price. However, the stock sits near $29.50 amid uncertainty about the deal taking place. David Fabor is reporting today that, based on a NY course case yesterday, there appears to be no let up in sponsors desire to do the deal. NY is scheduled to go to trial May 5th and Texas court case begins in early June.

Moodys (MCO) is seeing 12 times its normal trading volume, with more than 98,000 put options trading today. Today’s top trade including an order of August 35 puts (42,500 contracts) above the asking price. The stock is up 4 cents to $37.15, with no company specific news to report. Moodys reported earnings on Wednesday and, after an initial gap higher to $39.50, shares have languished since that time.

Verizon options very active ahead of earnings due Monday morning. Option volume at nearly triple their normal pace, with focus on the May 35 puts in anticipation of an earnings-related move. More than 10,000 may 35 puts have traded in buyer initiated flow- ISE sentiment comfirms a cross of nearly 8000 contracts at 55cents was customer opening buyer.

The Select Sector Energy Fund (XLE) is seeing two times its normal trading volume, with heavy trading in the XLE June 80 and June 82 put options. Trading is defensive as the fund, which holds all of the energy-related names from the S&P 500, stumbles $1.64 to $82.28. The decline is in reaction to a substantial drop in crude oil today. Crude recently traded down $3.60 to $114.70 a barrel.

option volume spiked to 8x normal levels as one large buyer Jan09 12.5 calls payed $1.65 20,000x on the PHLX. Looks to be adding to large existing long upside call positions in IVN- todays trade will most likely push total call OI over 100,000 contracts vs put OI of below 7000. Majority of open interest has been created by long-call buyers and stock has been mentioned as a potential target. IVN is up more than 3.5% to 10.27 today, but well off $13 highs seen earlier this year.

General Motors (GM) is leading the Dow higher Thursday morning. Shares of the automaker are trading up an impressive $1.64, or 7.8 percent, to $22.58. Ford Motor (F) is up $1.10 to $8.62 on the heels of its better than expected earnings. Outside of that, the only noteworthy news seems to be that the UAW has extended its deadline for a strike at a Kansas plant, which produces the fast selling Chevy Malibu. The deadline has been extended till…Friday morning. However, according to Reuters, a union spokesperson reports “very little” movement in the talks. Nevertheless, sentiment is bullish in the options market as well, with buying interest picking up in the May 22.5 and May 25 call options. GM earnings due out on April 29.

The CBOE Volatility Index (.VIX) is down .25 to its lows of the session of 20.01. The decline in the volatility index comes as the major averages shake off early weakness and move higher. The S&P 500 (.SPX) is up 1.5 points. While the days economic and earnings news can safely be characterized as mixed, a rebound in the dollar is getting some attention. The dollar, which made a run beyond 1.60 on the euro Tuesday, has seen two days of strong gains and now sits near 1.565. Against the yen, the buck is up .84 to 104.20.

Sprint Nextel (S) call options have seen a sudden increase in interest as the stock makes a run to session highs. S was recently up 68 cents to $7.73. 20,000 calls and 5,600 put options have traded. Directional sentiment measured by today’s volume is 62 percent bullish

Marvell (MRVL) calls are seeing active trading today. Total volume is running three times normal, with 41,000 calls and 3,048 put options trading today. Sentiment is predominantly bearish (52 percent), as it appears that many of the June 12.5 and November 15 calls are being sold. There is no company specific news to explain the action, but the stock is up 70 cents to $12.28. Rival Broadcom (BRCM) is up $3.20 to $26.75 on earnings. In addition, optimism is running high ahead of an earnings report from Apple Computer (AAPL) due out after the closing bell. AAPL is up $2.48 to $162.68 ahead of the report. MRVL is a supplier for the 802.11 WiFi socket in the 3G iPhone (but might have ceded the iPod Touch WiFi socket to BRCM’s combo chip.)

MBIA (MBI) is down $4.00 to $9.28 and options volume is running two times normal. Implied volatility has gapped higher on the heels of disappointing news from Ambac (ABK). Today, Ambac plunged $2.53 to $3.50 a share after reporting a quarterly loss of $6.93 a share, which was $5.42 worse than expected. Despite soothing talk in the post earnings conference call, the stock is not far from its worst levels of the trading session (3.47). MBI is falling in sympathy and implied volatility is up 55 percent from yesterday’s levels on heavy put buying. 27,000 contracts have traded, compared to 12,000 calls. Today’s most actives, the May 7.5 puts, are seeing 73 percent of today’s trade on the offer.